So I was talking about Coasian hell the other day. Here’s a great example. The franchisee of the Great Northern, Thameslink, and Southern railway routes decided to pay its penalty clauses in advance of taking over the franchise. Until September 2018, however bad the trains get, it won’t cost them any more than the £10m they already forked over. The whole apparatus of penalties is therefore completely meaningless because whatever happens, the payout will be the same. Unastonishingly, the trains are terrible.